Brian Pearce is Subject of FINRA Suspension Alleging Undisclosed Private Securities Transactions
Brian Pearce (CRD #: 1334784), a broker formerly registered with World Equity Group, has been suspended by FINRA, according to his BrokerCheck record, accessed on November 24, 2021.
According to an Acceptance, Waiver, and Consent agreement dated November 2, 2021, Brian Pearce consented to the findings that from August 2016 to May 2017 he participated in private securities transactions totaling $607,730 without disclosing them to his firm - violating FINRA Rules 3280 and 2010.
According to the findings, Brian Pearce allegedly solicited investors to purchase $607,730 in securities of a company (Future Income Payments, LLC), that represented itself as a structured cash flow investment that purchased pensions at a discount from pensioners and then sold a portion of those pensions as a pension stream to investors. Future Income Payments generally promised investors a 7% to 8% rate of return on their investment. Brian Pearce reportedly received a total of $24,309 in commissions in connection with his sales of the securities.
Brian Pearce's firm prohibited its registered representatives from participating in private securities transactions without prior written approval from the firm. Brian Pearce allegedly did not provide notice to the firm prior to participating in the sales.
FINRA Rule 3280 states that before participating in any private securities transaction, a registered broker should provide written notice to his/her member firm describing in detail the proposed transaction and proposed role. The broker should also state whether he/she has received or may receive selling compensation in connection with the transaction.
A violation of FINRA Rule 3280 is also a violation of FINRA Rule 2010, which requires associated persons to observe high standards of commercial honor and just and equitable principles of trade in the conduct of their business.
As part of the terms of the AWC, Brian Pearce consented to the following:
- A 7-month suspension from associating with any FINRA member in any capacity, ending June 14, 2022
- A $5,000 fine
- Disgorgement of $9,723
You can read the complete AWC here.
Between 2011 and 2021, Brian Pearce was involved in two investor disputes:
- On June 21, 2021, an investor alleged that Brian Pearce recommended structured cash flows administered by Future Income Payments, LLC, which was not sold through the firm. The damage amount requested is $200,000; the case is still pending.
- On August 26, 2011, an investor filed a dispute against Brian Pearce, alleging that from 2001-2010, he incurred losses due to Brian Pearce's poor management of his account. The investor further alleged that the account was not invested conservatively, as he had instructed. The damage amount requested was $456,964.00. The case was denied.
On December 7, 2015, Brian Pearce consented to the entry findings by the Florida Office of Financial Regulation that he allegedly conducted prohibited business practices by failing to send clients itemized invoices. Brian Pearce agreed to pay an administrative fine of $6,000.
Brian Pearce has passed the following exams:
- Series 65 - Uniform Investment Adviser Law Examination
- Series 63 - Uniform Securities Agent State Law Examination
- SIE - Securities Industry Essentials Examination
- Series 3 - National Commodity Futures Examination
- Series 7 - General Securities Representative Examination
- Series 24 - General Securities Principal Examination
Brian Pearce has also worked with the following firms:
- Taylor Capital Management (CRD#:43559)
- FSC Securities Corporation (CRD#:7461)
- Securities Service Network (CRD#:13318)
- Aegon USA Securities (CRD#:13302)
- Princor Financial Services Corporation (CRD#:1137)
- Allen & Company Of Florida (CRD#:25)
- Shearson Lehman Hutton (CRD#:7506)
- E. F. Hutton & Company (CRD#:235)
Kurta Law Can Help
If you suffered losses after working with Brian Pearce, don't hesitate to contact us today at 877-600-0098 or firstname.lastname@example.org for a free consultation.
For nearly 20 years, Kurta Law has advocated for investors to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.